Major blow for Guinness drinkers as they’re hit with new warning | UK | News
Guinness drinkers have been dealt some bad news as Diageo, the company behind the iconic Irish stout, announced a price hike taking effect in the first half of the year. From April 1, a price hike will be slapped on a number of Diageo products, including Guinness, Smirnoff Vodka and Baileys Irish Cream. The wholesale cost of Guinness Draught is set to jump by 5.2%, meaning pub owners face a list price increase of around 4p per pint.
Some pubs may have no choice but to pass this cost on to customers as businesses struggle with their current operational costs. Diageo has said the decision was made due to the “rising cost of doing business”. A spokesperson said: “We have kept today’s cost price increase to a minimum, reflecting the rising costs in our supply chain.”
For example, it is reportedly considering selling off its Chinese assets to trim down its portfolio. Diageo is working with Goldman Sachs and UBS to review its operations in China, where sales have been falling.
Last month, it struck a 2.3 billion dollar (£1.7 billion) deal to sell its majority stake in an East African beer business to Japanese drinks company Asahi.
According to YouGov, Guinness is by far the most popular beer brand in the UK, followed by Stella Artois, Peroni, Budweiser and Heineken.
The price increases do not apply to Guinness 0.0, Guinness Microdraught, and the 440ml cans of Guinness that are sold in supermarkets and off-licences.
This would translate to pulling more than 1.3 billion more pints, something that would be harder to achieve amid price increases.
Meanwhile, Wetherspoons boss Sir Tim Martin has said pubs are losing customers to the supermarket as increased taxes make the prices of pints more expensive.
